The EPS beat is driven by share repurchases and tax benefits, not operational improvement. Revenue and margins continue to decline with housing headwinds. Watch the upcoming Investor Day on November 17 for any strategic updates on capital allocation or cost actions, and monitor housing start data for signs of recovery.
Price Chart
Executive Summary
Builders FirstSource reported Q3 2026 adjusted EPS of $1.51, well above the $1.04 consensus, while net sales of $3.85B modestly exceeded the $3.75B estimate. However, year-over-year comparisons remain weak: net sales declined 2.2%, gross profit fell 10.6%, and adjusted EBITDA dropped 28.3%. The company narrowed its full-year 2026 guidance, maintaining the midpoint for net sales ($14.2B-$14.6B) and adjusted EBITDA ($1.075B-$1.125B), signaling continued housing market headwinds.
Key Financial Metrics
Key Facts
- Q3 2026 net sales of $3.85B, down 2.2% YoY; core organic sales declined 3.9%
- GAAP diluted EPS of $0.56 vs $1.10 in prior year; adjusted diluted EPS of $1.51 vs $2.00
- Gross profit margin contracted 260 bps to 27.8%; adjusted EBITDA margin fell 290 bps to 8.1%
- Net debt to LTM adjusted EBITDA ratio worsened to 4.1x from 2.3x a year ago
- Full-year 2026 guidance narrowed: net sales $14.2B-$14.6B, adjusted EBITDA $1.075B-$1.125B (midpoints unchanged from prior $14.0B-$14.8B and $1.0B-$1.2B ranges)
- Free cash flow of $76M in Q3, down 83.7% from $464.9M in prior year
Financial Impact
Q3 adjusted EPS of $1.51 beat consensus of $1.04 by 45.2%, but YoY earnings declined 24.5% on an adjusted basis; full-year guidance midpoint maintained but range narrowed
Segment Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Manufactured products | $845.4M | -2.8% |
| Windows, doors & millwork | $937.8M | -7.3% |
| Specialty building products & services | $1.0B | -3.4% |
| Lumber & lumber sheet goods | $1.0B | +4.7% |
Risk Factors
- Prolonged housing downturn with single-family starts projected down mid- to high-single digits
- Leverage rising to 4.1x net debt/EBITDA, limiting financial flexibility
- Commodity price deflation and competitive pricing pressure on margins
- Free cash flow declining sharply, reducing capacity for share repurchases or debt reduction
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-436795 |
| Document: bldr-20261029.htm | 0001193125-26-436795 |
| Document: 0001193125-26-436795-index-headers.html | 0001193125-26-436795 |
| Document: 0001193125-26-436795-index.html | 0001193125-26-436795 |
| Document: 0001193125-26-436795.txt | 0001193125-26-436795 |
| 8-K Data (Synthetic) | 0001193125-26-436795 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 30, 2026 today | SC 13G/A | $63.93 | awaiting T+1 | awaiting T+1 | $63.68 (−0.39%) |
Oct 29, 2026 1d ago | 8-K | $57.09 | awaiting T+1 | awaiting T+1 | $63.68 (−11.54%) |
Oct 27, 2026 2d ago | Institutional Cluster | $55.88 $63.06 | ▲ +12.85% | ▲ +13.23% | $63.68 (+13.96%) |
Oct 22, 2026 7d ago | Institutional Cluster | $56.85 $56.21 | ▲ +1.13% | ▲ +1.84% | $63.68 (−12.01%) |
Oct 16, 2026 13d ago | 8-K/A | $52.95 $53.92 | ▲ +1.83% | ▲ +1.50% | $63.68 (+20.26%) |
Oct 5, 2026 25d ago | SC 13G/A | $55.63 $56.22 | ▲ +1.06% | ▲ +0.51% | $63.68 (+14.47%) |
Jul 30, 2026 13w ago | 8-K | $66.01 $66.44 | ▼ −0.65% | ▲ +0.05% | $63.68 (+3.53%) |
May 18, 2026 23w ago | 8-K | $66.39 $71.23 | ▲ +7.29% | ▲ +6.25% | $63.68 (−4.08%) |
Apr 30, 2026 26w ago | 8-K | $79.09 $75.72 | ▲ +4.26% | ▲ +4.48% | $63.68 (+19.48%) |
Feb 28, 2026 34w ago | Institutional Cluster | $99.41 $97.45 | ▼ −1.97% | ▼ −1.06% | $63.68 (−35.94%) |
US Market Status
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